OFFICE OF THE MAJORITY LEADER

TRANSCRIPT

Discussing Housing Rescue Bill on MyFox
July 30, 2006

>>> JULIE, THANK YOU SO MUCH. THE CRUMBLING ECONOMY FORCING CONGRESS TO ACT. THE BILL THAT WOULD OFFER BILLIONS IN BAILOUT MONEY FOR FAMILIES FACING FORECLOSURE AND FANNIE MAE AND FREDDIE MAC IS A WAITING THE PRESIDENT'S SIGNATURE AND IT'S GOING TO COST EVERY TAX PAYER IN THE COUNTRY IN SOME WAYS. JOINING US IS STENY HOYER. CONGRESSMAN, GOOD MORNING. >> MORNING, STEVE. >> LET'S TALK ABOUT THE POSITIVENESS OF THE BILL. HOW DO YOU THINK IT'S GOING TO HELP FOLKS IN MARYLAND? >> I THINK IT'S GOING TO HELP A LOT OF PEOPLE IN MARYLAND. WE HAVE HAD A 600% SPOKE IN THOSE EITHER GETTING A NOTICE OF POSSIBLE FORECLOSURE OR IN FORECLOSURE. THERE IS A REAL PROBLEM IN MARYLAND AND THIS HOUSING BILL WILL OFFER HELP TO ALMOST A HALF A MILLION PEOPLE AND WILL GIVE THEM SOME OPPORTUNITY OF REFINANCING THE CHEAPER LOANS AND TO HAVE LENDERS, BY THE WAY, TAKE LOSSES, BUT THE BENEFITS THAT THEY WILL HAVE IS AN FHA-INSURED LOAN. AND I WOULD DISAGREE THAT THAT IS A BAILOUT. IT'S SIGNIFICANCE OF THOSE AND IN ADDITION, IT WILL BE GIVEN THE TAX BREAK AND TO SPUR HOME BUYING THAT WILL STABILIZE PRICES AND IN ADDITION TO, THAT WE CREATED A STABLE HOUSING AFFORDABLE FUND TO PROVIDE LOW- COST HOUSING TO PEOPLE AND LASTLY, WE PASSED AN OVERSIGHT, STRENGTHENING THE REGULATION OF FAN -- FOR FANNIE MAE AND FREDDIE MAC TO PROVIDE RISKY LENDING IN THE FUTURE. >> LET'S TALK ABOUT THE FINE SPRINT HERE. WE TALKED TO A NUMBER OF ECONOMISTS AND WITH ANYTHING, YOU HAVE TO BE CAREFUL AND READ THE FINE PRINT ON THESE THINGS. FIRST OF ALL, ONE THINK THIS THEY BROUGHT UP WAS THE $7,500 TAX CREDIT. SURE IT SOUNDS GREAT ON THE SURFACE AND THIS IS SOMETHING THAT WILL BE PAID BACK, CORRECT? >> THAT IS CORRECT AND THAT IS WHY I SAY IT'S NOT A BAILOUT. WHAT WILL HAPPEN IS WHEN THE HOME OWNER SELLS HIS HOME IN EFFECT, WE WILL BE PARTNERSHIPS IN THAT SALE SO THAT ALTHOUGH THERE IS GOING TO BE ASSISTANCE GIVEN, THE FEDERAL GOVERNMENT CAN RECOUPE THAT IN THE FUTURE. >> AND WHEN WE TALK ABOUT FREDDIE MAC AND FANNIE MAE, THEY'RE GOING TO GET AN UNLIMITED POOL TO DIP INTO NOW TO MAKE SURE THEY STAY AFLOAT AND AT THE SAME TIME, YOU'RE LOOKING AT ANOTHER $300 BILLION THAT IS GOING TO HELP WHERE WITH THIS BILL. AGAIN, CRITICS ARE SAYING, CONGRESSMAN, THAT THIS COULD INCREASE THE DEAF SIGH 50 MILLION, 100 BILLION ANOTHER 300 BILLION COULD HURTAL TAXPAYERS ACROSS THE COUNTRY. >> LET ME SAY THAT THAT ESTIMATE ON THE 300 BILLION THAT ULTIMATELY WE MAY HAVE AS MUCH AS A BILLION AND A HALF IN LOSSES AND CERTAINLY NOWHERE IN THE NEIGHBORHOOD OF 300 BILLION. WHAT THIS IS ARE INSURED LOANS. AGAIN, THE LENDER HAS TO MARK DOWN HIS PRICE SO HE'S GOING TO...